The world is constantly evolving, and one of the driving forces behind this evolution is technology. As software continues to advance, it has the power to transform various aspects of our lives. But what happens when software "eats" the world? This phrase refers to the idea that as technology becomes more prevalent, it has the potential to disrupt industries and change the way we live. However, this transformation is not always positive.

The world is constantly evolving, and one of the driving forces behind this evolution is technology. As software continues to advance, it has the power to transform various aspects of our lives. But what happens when software "eats" the world? This phrase refers to the idea that as technology becomes more prevalent, it has the potential to disrupt industries and change the way we live. However, this transformation is not always positive.

In many cases, when something becomes illegal, people and organizations will find a way to profit from it regardless. This is particularly true when it comes to software and technology. Even if a law is put in place to prohibit certain actions, if there is still a financial incentive, companies and governments will often continue to engage in those activities. This can lead to a devaluation of certain goods and resources that were once abundant but become economically worthless.

On the other hand, scarcity can lead to wealth and power. Rivalrous goods, such as gold or Bitcoin, are valuable precisely because they are scarce. In contrast, anti-rivalrous goods, like language, derive their value from their abundance. These goods are considered "positive-sum" because either everyone benefits or everyone loses together. In a society where everyone's incentives are aligned, there is a sense of anti-fragility, meaning that the system becomes stronger as a whole.

Throughout history, we have witnessed the rise and fall of civilizations. However, with the exponential growth of technology, the dynamics of societal collapse are changing. One of the root causes of collapse is our participation in rivalrous or "zero-sum" games. In these games, one person's gain is another person's loss. When actions that should be mutually beneficial become competitive and zero-sum, negative consequences arise.

To avoid these pitfalls, we need to reward innovation in a way that eliminates rent-seeking behavior and considers the externalities produced by innovation. This requires a change in consciousness, one that recognizes the interconnectedness of our fates. When we view ourselves as interconnected parts of a larger whole, we naturally adopt a more positive-sum mindset. Success for oneself is seen as success for the entire system. By understanding the interconnectedness of our society, we can address the rivalry problem and reduce the need for competition over scarce assets.

Now, let's shift our focus to a different topic - pre-seed funding. Pre-seed funding is a crucial stage in the development of startups. It provides the necessary capital for hiring skilled engineers, developing early versions of products, and acquiring customers through marketing efforts. Typically, pre-seed rounds involve raising less than $1M and are aimed at supporting ideas or alpha products rather than fully polished, market-ready products.

Timing is crucial when it comes to raising pre-seed funding. It is generally advised to avoid raising funds during end-of-year holidays and early summer when investors are on vacation. Additionally, it's essential to have a cash buffer of around 25% (some recommend 50%) to account for unexpected costs that may arise during the execution of your business plan.

Statistics show that the average amount raised in a pre-seed round is $626,360 for US startups and $538,108 for startups in the rest of the world. To secure funding, founders often need to meet with multiple investors, with an average of 26 meetings required to close a pre-seed round. The time it takes to close a round varies, with 15% of founders closing in 1-6 weeks, 42% taking between 7-18 weeks, and the remainder taking 19 weeks or more.

To attract investors, it is crucial to have a proof of concept for your product or service idea, a clear plan for monetization, and references from potential customers indicating their willingness to pay for your offering. If you lack the technical skills to build a proof of concept, finding a technical co-founder can be a viable solution. Many investors prefer founding teams of 2-3 individuals as they are perceived as less risky than solo founders.

When it comes to funding sources, there are several options available. Angel investors typically invest between $1,000 and $1,000,000, with the average check size falling between $25,000 and $100,000. It is essential to verify the accreditation of angel investors to prevent potential issues during future rounds with institutional investors. Pre-seed VC firms can write larger checks, ranging from $100,000 to $1M.

Accelerators are another avenue for pre-seed funding, with thousands of programs worldwide. These programs typically provide funding in exchange for equity (typically 5-10%) and offer various services to support startup growth. Equity crowdfunding platforms, thanks to Regulation CF, allow startups to raise up to $5M per year from the crowd, including non-accredited investors. This democratizes the investment process and enables startups to raise capital from a broad base of supporters.

In conclusion, as software continues to shape our world, it is essential to navigate the potential challenges and opportunities it presents. By recognizing the interconnectedness of our society and promoting positive-sum thinking, we can mitigate the negative effects of rivalrous competition. When it comes to pre-seed funding, timing, preparation, and finding the right investors are key to securing the necessary capital for early-stage startups. By understanding the funding landscape and utilizing available resources, entrepreneurs can increase their chances of success.

Actionable advice:

1. Foster a positive-sum mindset: Embrace the idea that success for oneself should align with the success of the whole. By recognizing the interconnectedness of our society, we can promote collaboration and reduce zero-sum thinking.

2. Prepare meticulously for pre-seed funding: Develop a clear proof of concept, a monetization plan, and gather references from potential customers. Additionally, consider finding a technical co-founder if you lack the necessary skills to build a prototype.

3. Explore various funding sources: While angel investors and pre-seed VC firms are common options, don't overlook the potential of accelerators and equity crowdfunding platforms. Research and consider the benefits each option offers and choose the best fit for your startup's needs.

By combining these insights on the impact of software on society and the intricacies of pre-seed funding, we can gain a comprehensive understanding of the challenges and opportunities that lie ahead. With the right mindset and strategic approach, we can navigate this ever-changing landscape and drive positive change through technology.